Highland Design Company creates radio and television advertising for local businesses in the twin cities. — following alphabetical list shows account balances January 2014

Highland Design Company creates radio and television advertising for local businesses in the twin cities. The following alphabetical list shows Highland Design’s account balances as of January 31, 2014:

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Required

Insert the account title at the top of its corresponding T account and enter the dollar amount as a normal balance in the account. Determine the balance of Equipment and then show that the accounting equation is in balance.

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Assets	Assets	=	Liabilities	Liabilities	Liabilities	Liabilities				+							Owner's Equity	Owner's Equity
Assets	Assets	=	Liabilities	Liabilities	Liabilities	Liabilities				+
												R. Mehta,	R. Mehta,	R. Mehta,	–	R. Mehta,	R. Mehta,	+			–
												Capital	Capital	Capital	–	Withdrawals	Withdrawals	+	Revenues	Revenues	–	Expenses	Expenses	Expenses
												Capital	Capital	Capital		Withdrawals	Withdrawals		Revenues	Revenues		Expenses	Expenses	Expenses
			Accounts	Accounts	Accounts	Accounts	Accounts	Accounts				R. Mehta,	R. Mehta,	R. Mehta,		R. Mehta,	R. Mehta,		Design	Design		Rent	Rent	Rent
Cash	Cash		Payable	Payable	Payable	Payable						Capital	Capital	Capital		Withdrawals	Withdrawals		Revenue	Revenue		Expense	Expense	Expense
18,400							6,420	6,420						74,000		36,000				210,000		11,880
Accounts	Accounts		Loans	Loans	Loans	Loans																Telephone	Telephone	Telephone
Receivable	Receivable		Payable	Payable	Payable	Payable																Expense	Expense	Expense
78,000					10,000	10,000	10,000	10,000														960
			Unearned	Unearned	Unearned	Unearned	Unearned	Unearned														Wages	Wages	Wages
Equipment	Equipment		Revenue	Revenue	Revenue	Revenue																Expense	Expense	Expense
49,180					18,000	18,000	18,000	18,000														124,000
Accounting equation without Equipment:	Accounting equation without Equipment:	Accounting equation without Equipment:	Accounting equation without Equipment:	Accounting equation without Equipment:	Accounting equation without Equipment:	Accounting equation without Equipment:
Equipment	Equipment	+	$96,400	$96,400			=	$145,580	$145,580	$145,580	$145,580
			Equipment	Equipment	Equipment		=		$49,180	$49,180	$49,180
Accounting equation in balance:	Accounting equation in balance:	Accounting equation in balance:	Accounting equation in balance:	Accounting equation in balance:	Accounting equation in balance:	Accounting equation in balance:
$145,580	$145,580	=	$34,420	+	+		$111,160	$111,160	$111,160	$111,160
$145,580	$145,580	=	$145,580

Highland Design Company creates radio and television advertising for local businesses in the twin cities. — following alphabetical list shows account balances January 2014

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SOLUTION: